On the heels of an ugly day, what could be more bullish than a giant acquisition of a financial company, a pure play on the bond market, by
? Wow, this one will be awfully hard for bond and stock bears to swallow.
If all stocks are expensive, how could
pay this kind of premium for
? If bonds are expensive, how could Buffett buy a huge bond owner? If insurance stocks are deflationary plays, how can Buffett buy GenRe unless he believes in the long-term deflationary scenario?
I am sure there is a way to paint this one as negative for the market that I haven't thought of, but I regarded it as a massive positive stunner -- the type of news that caused me to scramble to see if I could get more exposure out of stocks by exercising calls that I might have left to go out worthless.
Days like today, so driven as they are by expiration shenanigans,
rebalancings, usually leave me clueless. I know I would like to read something into the fact that there were many more sell imbalances than buy imbalances at the close, but that's never made me a dime. I also know it was difficult to sort out the
strength with the S&P's weakness.
But Buffett's move is unequivocally bullish and because it involves his own worth, I found it reassuring, given my belief that things simply aren't that bad out there and that we are at the lower end of a trading range that will hold.
I will be redoing my
piece for newbies tomorrow but will be taking a Father's Day break to see what the girls got me. I know my youngest kept telling me all week that there is a closet I should stay away from till Sunday. So I have my fingers crossed!!!
James J. Cramer is manager of a hedge fund and co-chairman of
Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Cramer's writings provide insights into the dynamics of money management and are not a solicitation for transactions. While he cannot provide investment advice or recommendations, he invites you to comment on his column by sending a letter to TheStreet.com at